XBRL (eXtensible Business Reporting Language) filing is a requirement for all Singapore companies when submitting their financial statements to ACRA (Accounting and Corporate Regulatory Authority). While the transition to XBRL has made financial reporting more efficient and consistent, it can also be challenging for SMEs, especially those without in-house accounting expertise. A rejection of your XBRL filing can delay your compliance and expose your company to penalties.
In this article, we’ll discuss common reasons why XBRL filings may be rejected by ACRA and how Singapore SMEs can avoid these issues, making the filing process smooth and compliant.
Problem:
In XBRL filing, financial data must be tagged using specific taxonomies, which are predefined codes that categorize financial information like assets, liabilities, revenue, and expenses. Incorrect tagging or using the wrong taxonomy for certain data points is a common cause of rejection.
Solution:
To avoid errors in tagging, ensure that your financial data is mapped correctly according to the XBRL taxonomy required by ACRA. Automated accounting solutions like ccMonet automatically categorize and tag financial data in real time, eliminating the need for manual mapping and reducing the chance of errors. These tools use AI to ensure that your data complies with the relevant accounting standards and taxonomies, reducing the likelihood of filing rejection.
Problem:
Another common reason for rejection is missing or incomplete financial information, such as incomplete income statements, balance sheets, or cash flow statements. Inaccurate or incomplete financial records may result in your XBRL submission being flagged for review or rejected by ACRA.
Solution:
Ensure that all financial statements are complete and contain all necessary information before filing. This includes ensuring that all transactions, expenses, assets, liabilities, and equity are accounted for. Using an automated accounting solution like ccMonet ensures that your financial records are consistently updated, making it easier to generate complete and accurate financial statements for your XBRL filing.
Problem:
ACRA requires XBRL filings to be in a specific format and version. Using the wrong format or outdated version of the XBRL taxonomy can lead to a filing rejection.
Solution:
Ensure that your XBRL filing is generated using the latest version of the ACRA-required XBRL taxonomy. AI accounting tools like ccMonet automatically update to the latest version of the XBRL taxonomy, ensuring that your filing is compliant with the current regulatory requirements. This eliminates the risk of using outdated or incorrect formats for your submission.
Problem:
ACRA’s XBRL filing system automatically validates the data in your submission. Any inconsistencies or errors in your financial data — such as discrepancies between the balance sheet and income statement — will trigger a validation error, resulting in rejection.
Solution:
Double-check your data to ensure that there are no discrepancies between your financial statements. Automated accounting tools like ccMonet offer built-in validation features that identify and flag errors before you submit your XBRL filing. These tools automatically reconcile your financial data, ensuring that everything aligns correctly and reducing the risk of errors.
Problem:
ACRA requires that your financial statements comply with the Singapore Financial Reporting Standards (SFRS). Any deviation from these standards, such as incorrect categorization of financial items or using non-compliant reporting methods, will lead to rejection.
Solution:
Ensure that your financial statements comply with the SFRS to avoid non-compliance issues. Automated accounting solutions like ccMonet are designed to automatically adhere to SFRS, ensuring that your financial data is categorized, reported, and structured according to the official guidelines. These tools simplify the compliance process, making it easier for SMEs to meet regulatory requirements without needing extensive accounting expertise.
Problem:
For certain financial documents, ACRA requires that the filing be signed off by directors or other authorized persons within the company. If these signatures or approvals are missing, the filing will be rejected.
Solution:
Ensure that the relevant individuals within your company have reviewed and approved the financial statements before submitting them to ACRA. Use automated accounting solutions like ccMonet to streamline internal approvals and ensure that all necessary signatures are obtained before the filing deadline.
Problem:
ACRA also requires that companies submit accurate and up-to-date information about their directors and shareholders as part of the annual filing. Missing or incorrect shareholder or director details can result in rejection.
Solution:
Ensure that all shareholder and director information is accurate and up-to-date before submitting your filing. Automated accounting systems like ccMonet allow businesses to keep track of shareholder and director details and ensure that all required data is included in the filing.
AI accounting software like ccMonet simplifies the entire XBRL filing process for SMEs. Here’s how it can help you avoid rejection:
XBRL filing is a critical part of the annual compliance process for all Singapore companies. However, filing rejections can be costly and time-consuming. By understanding the common causes of rejection and using AI-powered accounting solutions like ccMonet, SMEs can ensure their XBRL filings are accurate, compliant, and submitted on time.
Ready to avoid XBRL filing rejection? Explore how ccMonet can streamline your accounting processes and make XBRL filing simple and error-free.
👉 Start your seamless XBRL filing process with ccMonet today!
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